Dear ASG members,

The HMRC Stakeholder Digest provides a monthly round-up of
our latest news and updates. We’d be grateful if you would share
relevant information with your clients or members.

This edition of the digest includes:

HMRC NEWS

- Welcoming HMRC’s new Chief Executive and First Permanent Secretary John Paul Marks

PERSONAL TAX

- Child Benefit increase
- Introduction of Making Tax Digital (MTD) for Income Tax for sole
  traders and landlords
- Repeal of furnished holiday letting regime 
- Expanding the Cash Basis

BUSINESS TAX

- Employer National Insurance rates 
- Paying your PAYE and VAT bill by direct debit 

GENERAL TAX

- HMRC launches new online interactive help for compliance checks
- Changes to tax rules for non-domiciled individuals
- Closure of the HMRC online community forums

Open Consultations:

- Consultation on Climate Change Levy: electrolytic hydrogen and energy context

Events and dates for your diary: 
 
- April events 
- May dates

HMRC NEWS 

Welcoming HMRC’s new Chief Executive and First Permanent Secretary John Paul Marks

Last month, John Paul (JP) Marks joined HMRC as the new First Permanent Secretary and Chief Executive. 
 
JP Marks has been a civil servant for over two decades and previously served as Permanent Secretary of the Scottish Government for 3 years.
 
In this video JP introduces himself and sets out his priorities, including closing the tax gap and raising 7.5 billion more per year by the end of this Parliament; improving our day to day performance and the experience of our customers; and modernising and reforming our tax and customs administration.

PERSONAL TAX 

Changes to the amount of Child Benefit

Child Benefit payments increased last month. 

As of April 7, 2025, parents will receive £26.05 per week - or £1,354.60 a year - for the eldest or only child and £17.25 per week - or £897 a year - for each additional child. Child Benefit is usually paid every 4 weeks and will automatically be paid into a bank account. There is no limit to how many children parents can claim for.

The quickest and easiest way for parents and carers to claim Child Benefit is by downloading the HMRC App or online through the digital service. As well as being able to view and manage Child Benefit payments a new function in the app means parents get a notification once their claim is received. Parents who claim online could receive payment in as little as three days.  

Families are encouraged to claim Child Benefit as soon as they can after their baby is born as it can only be backdated up to three months.

Introduction of Making Tax Digital (MTD) for Income Tax for sole traders and landlords

The way sole traders and landlords report their income and expenses to HMRC is changing. 

From April 2026, Making Tax Digital (MTD) for Income Tax means customers with gross income from self-employment and property more than £50,000 will need to use compatible software to keep digital records and send updates to HMRC each quarter. This will encourage growth and help customers stay on top of their tax affairs. 

Volunteering to test the service is the best way to prepare for the change.

Taking part gives customers the opportunity to become familiar with the processes and software before it becomes a legal requirement.

Repeal of furnished holiday letting regime, effective from April 2025

Property investors, landlords and their representative bodies should be aware that as of 1 April, furnished holiday let properties are now subject to the same rules as other property income and gains.

This change applies as of 1 April 2025 for Corporation Tax and Corporation Tax on Capital Gains and 6 April 2025 for Income Tax and Capital Gains Tax.

This change has been brought in to align rules for Furnished Holiday Lettings and other properties, so that all are treated fairly for tax purposes and to simplify tax rules for landlords.

For more information and updated guidance please refer to the Property Income Manual.

Expanding the Cash Basis

Last month we told you about changes to the cash basis which applied from 6 April 2024. 

Cash basis is a way to work out your income and expenses for your Self Assessment tax return if you’re a sole trader or partner. It means that you only need to declare income when you have actually been paid. The changes we’ve introduced make it easier for many businesses to use it. 

We can confirm the guidance for using the cash basis has been updated and is now available for review on GOV.UK. 

BUSINESS TAX

Employer National Insurance changes 

Changes to National Insurance rates and thresholds for employers for 2025 to 2026?took effect on 6 April 2025.
 
Some employers are now liable to pay employers’ National Insurance and report employee pay and deductions to HMRC for the first time.?Guidance on Pay As you Earn (PAYE) and payroll for employers?can be found online at GOV.UK.
 
How employers are affected